At NSI Insurance, one of the most commonly asked questions we hear is, “Why does my insurance company want to inspect my house?” There are a few reasons! After purchasing home insurance, your insurance company may require a home inspection to ensure your property meets its standards. During this time, they can assess the risk of providing you with coverage. If your home is in poor condition or hazards are present, the insurance company may choose to cancel your policy—unless you fix any noted issues within a reasonable amount of time. If you’re preparing for an inspection, here’s what you need to know.
Why Do Insurance Companies Require Home Inspections?
Insurance companies require inspections for liability and risk management. Inspections may be required if you are a new customer, if your home has a relatively old build date, or if the insurance company needs to determine your property’s value and replacement cost.
Home inspections can also be beneficial for homeowners and home buyers. During your inspection, potential hazards—unbeknownst to you—may be brought to light. In these cases, home inspections could save you significant amounts of money by helping you identify and remedy issues before they lead to greater damage.
What Types of Issues to Home Inspectors Look For?
Home inspectors seek out any issue that could potentially lead to significant property damage or bodily injury. Inspectors typically examine the condition of your home and built-in appliances, including:
● Plumbing
● Roof
● HVAC system
● Foundation
● Drainage system
● Alarms
● Fencing
● Gutters
● Chimney
● Windows
● Doors
Depending on your home’s build date, inspectors may look for dangers that were common in older homes—like lead paint and asbestos. Inspectors may also check to see if you have any swimming pools, trampolines, or other potentially dangerous amenities that were not previously disclosed.
When Your Insurance Company Identifies an Issue
In most cases, if your insurance company identifies any issues, they will send you a detailed letter that identifies their concerns with a deadline by which they must be fixed. If you abide by these conditions and fix your property by this deadline, you should be good to go! However, if you fail to fix your property, the insurance company will likely cancel your policy, and you may have trouble finding another policy until you fix these issues. After all, most other insurance carriers will also require an inspection.
Your insurance company may also use an inspection as an opportunity to reevaluate your home’s value and replacement cost. In these cases, your insurance company may follow up on your inspection by telling you how much coverage you need to fully protect your property against potential damages. Your rate may be adjusted if your replacement value is higher than initially anticipated or if the inspector identifies liabilities that weren't considered in the initial policy. On the other hand, if the inspector doesn’t identify any major issues, and you have made home improvements, like replacing your old roof, it’s possible that your insurance company may lower your rate.
How to Prepare for a Home Inspection
For existing homeowners, the best way to prepare for a home inspection is to perform regular maintenance. You should ensure your home is up to your state code and regularly inspect appliances for issues. Regularly check both the interior and exterior of your home to catch small and easy fixes before they turn into bigger problems.
Remember to test all of your smoke and carbon monoxide detectors to ensure they are in working condition, and make sure your fire extinguishers are not expired. If you neglect to maintain your property, it’s likely that a home inspector will find issues that you must fix to purchase or maintain coverage.
NSI Insurance Has Miami Covered
Homeowners insurance provides essential coverage that can protect your property and personal belongings against common hazards. But to maintain your coverage, you may need to undergo a home inspection so that your insurance company can identify any potential hazards and liabilities.
At NSI Insurance, we have over 20 years serving residents in Miami and surrounding areas. We understand how important it is to have access to affordable, comprehensive home insurance, and it is our goal to ensure Florida homeowners can find and maintain the coverage they need to protect their property.
As an independent agency, we’re happy to provide our customers with multiple quotes from the state’s top carriers. Contact our team today to learn more!